Driven Brands (NASDAQ:DRVN) Shares Gap Up After Earnings Beat

Driven Brands Holdings Inc. (NASDAQ:DRVN)’s share price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $13.54, but opened at $14.25. Driven Brands shares last traded at $13.7350, with a volume of 203,423 shares changing hands.

The company reported $0.30 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.06. The firm had revenue of $484.44 million for the quarter, compared to the consensus estimate of $454.91 million. Driven Brands had a net margin of 6.55% and a return on equity of 25.83%. The firm’s revenue was down 6.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.27 EPS.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on DRVN shares. BMO Capital Markets reduced their price target on shares of Driven Brands from $18.00 to $14.00 and set a “market perform” rating on the stock in a research report on Thursday, May 21st. William Blair lowered Driven Brands from an “outperform” rating to a “hold” rating in a report on Wednesday, April 22nd. Freedom Capital upgraded Driven Brands to a “strong-buy” rating in a research note on Monday, March 23rd. Benchmark reaffirmed a “buy” rating on shares of Driven Brands in a report on Tuesday, May 26th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Driven Brands in a report on Friday, March 27th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $17.28.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Osaic Holdings Inc. increased its position in Driven Brands by 82.1% in the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the company’s stock worth $37,000 after buying an additional 941 shares during the period. EverSource Wealth Advisors LLC lifted its stake in Driven Brands by 744.6% in the second quarter. EverSource Wealth Advisors LLC now owns 2,103 shares of the company’s stock valued at $37,000 after buying an additional 1,854 shares during the last quarter. Comerica Bank boosted its holdings in shares of Driven Brands by 328.8% during the fourth quarter. Comerica Bank now owns 2,933 shares of the company’s stock valued at $43,000 after acquiring an additional 2,249 shares during the period. Larson Financial Group LLC grew its position in shares of Driven Brands by 1,347.7% during the fourth quarter. Larson Financial Group LLC now owns 3,822 shares of the company’s stock worth $57,000 after acquiring an additional 3,558 shares during the last quarter. Finally, SJS Investment Consulting Inc. grew its position in shares of Driven Brands by 420.2% during the first quarter. SJS Investment Consulting Inc. now owns 4,500 shares of the company’s stock worth $57,000 after acquiring an additional 3,635 shares during the last quarter. Institutional investors and hedge funds own 77.08% of the company’s stock.

Driven Brands Stock Performance

The company has a debt-to-equity ratio of 2.45, a quick ratio of 0.67 and a current ratio of 0.75. The stock’s fifty day moving average is $13.08 and its two-hundred day moving average is $13.93. The firm has a market cap of $2.23 billion, a price-to-earnings ratio of 16.30 and a beta of 0.97.

About Driven Brands

Driven Brands Holdings Inc (NASDAQ: DRVN) is a leading North American provider of automotive aftermarket services, operating through a network of franchised and company-owned locations. The company’s platform encompasses a diverse portfolio of car care and maintenance brands, including Meineke Car Care Centers, Maaco Collision Repair & Auto Painting, Take 5 Oil Change, and Carstar Collision Repair. Driven Brands delivers a full range of services from routine maintenance and oil changes to collision repair, paint protection, and vehicle customization.

Headquartered in Charlotte, North Carolina, Driven Brands serves both individual consumers and commercial clients across the United States and Canada.